Public sector net borrowing in August was £13.2 billion, still very high, but down on the £14.4 billion figure for August 2012. Cumulative figures for the April-August period also suggest borrowing is on the way down: £46.8 billion versus £50.5 billion.
The idea that borrowing was stuck at around £120 billion a year is also challenged by the new figures: the 2012-13 deficit is now put at £115.7 billion, down £2.8 billion on 2011-12.
The figures suggest the public finances are benefiting from stronger activity. In April-August taxes on production (including VAT) were up 3.8% on a year earlier, while taxes on income and wealth were up by 3.3%. Over the same period government current expenditure was up by 2.6%. More here.